PDF CALIFORNIA HOUSING FINANCE AGENCY CalHFA FHA Loan Program

CALIFORNIA HOUSING FINANCE AGENCY

CalHFA FHA Loan Program

LAST REVISED: NOVEMBER 1, 2019

Table of Contents

I. Program Summary

CALHFA FHA LOAN PROGRAM 1

II. Eligibility

1

a. Borrower Requirements

b. Eligible Homebuyers

c. Homebuyer Education

d. Owner Occupancy

e. Property Requirements

f. Lender Eligibility Requirements

2

g. Broker Eligibility Requirements

3

III. Underwriting & Compliance

3

a. Transaction type

b. Term

c. FHA's Section of the Act

d. LTV and CLTV

e. Maximum Loan Amount

f. FHA High Balance Loan Limits

g. Maximum Sales Price Limits

h. Income & Sales Price Limits

i. Income Requirements

4

j. Qualifying Ratios

k. Minimum Credit Score

l. Automated Underwriting

m. Sales Concessions/Contributions

n. Miscellaneous Lakeview Loan Servicing Underwriting Guidelines

5

IV. Subordinate Financing

5

a. CalHFA Subordinate Financing

b. Exceptions to First-time Homebuyer Requirement

6

c. Non-CalHFA Subordinate

d. Other Programs and Assistance

V. CalHFA Loan Process (Submission, Approval & Purchase)

7

VI. Fees

7

VII. Reservations, Rate Locks & Extensions

8

a. Reservations and Rate Locks

2019 CALIFORNIA HOUSING FINANCE AGENCY

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Table of Contents (cont.)

CALHFA FHA LOAN PROGRAM

VIII. Basic Home Protection Coverage

9

a. Mandatory Home Warranty Insurance Coverage

IX. Pre-Closing Loan Submission

9

a. Loan Submission Process b. Forms

X. Post-Closing Loan Delivery & Purchase

10

a. All CalHFA First Loans:

b. All CalHFA Subordinate Loan(s):

c. Forms

11

XI. Frequently Asked Questions

12

a. Sale Tools And Marketing Materials

16

2019 CALIFORNIA HOUSING FINANCE AGENCY

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Program Summary

CALHFA FHA LOAN PROGRAM

The CalHFA FHA program is an FHA-insured loan featuring a CalHFA fixed interest rate first mortgage. This loan is fully amortized for a thirty (30) year term and can be combined with either the MyHome Assistance Program (MyHome) or School Teacher and Employee Assistance Program (School Program).

The CalHFA FHA loan is not subject to Recapture Tax.

Eligibility

Borrower Requirements

Each borrower must

? Be either a citizen or other National of the United States, or a "Qualified Alien" as defined at 8 U.S.C ? 1641

? Meet the credit, income and loan requirements detailed in this program handbook, as well as CalHFA's Lender Manual, Fannie Mae, the CalHFA-approved lender, the mortgage insurer and CalHFA's master servicer's requirements

Eligible Homebuyers

This program is available for both firsttime and non-first-time homebuyers. When combining the CalHFA FHA with CalHFA subordinate loans, the first-time homebuyer requirement applies.

Homebuyer Education

Homebuyer Education counseling is required for one occupying first-time homebuyer. Homebuyer Education is not required for non-first-time homebuyer(s).

? Online Homebuyer Education through eHomeTM

? Face-to-Face Homebuyer Education through NeighborWorks America or through one of the HUD approved Housing Counseling Agencies

Owner Occupancy

? All borrowers must occupy the property as their primary residence within sixty (60) days of closing

? Non-occupant co-borrowers are not allowed

? Non-occupant co-signers are not allowed

Property Requirements

? Sales price of the home cannot exceed CalHFA's sales price limits established for the county in which the property is located

? Property must be a single-family, one-unit residence, including FHAapproved condominium/PUDs

>> FHA Single-Unit condominium project approval process is not allowed

>> It is the responsibility of the lender and not the master servicer to meet these guidelines

? Manufactured homes are permitted with the following parameters:

>> Singlewide manufactured homes are not eligible

>> Not available on Limited 203(k)

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2019 CALIFORNIA HOUSING FINANCE AGENCY

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Eligibility (cont.)

CALHFA FHA LOAN PROGRAM

>> Manual Underwriting is not permitted on manufactured homes

>> All manufactured homes must meet FHA 4000.1, Master Servicer and CalHFA loan program requirements

Additional Property Guidelines

? Accessory Dwelling Units (ADU), Guest houses, "granny" units, and "in-law" quarters are eligible

>> The property must be defined as a one-unit property

>> Multiple accessory units are not permitted

>> Must meet investor guidelines and city/county zoning ordinances

? Per investor guidelines ? If rental income from the ADU is used for credit qualifying, CalHFA will also use the gross rental income for the compliance income calculation

? Leasehold Estates

>> Must follow FHA guidelines

>> All Leasehold Estate documentation must be submitted to CalHFA's Master Servicer with purchase package for review and approval

? Land Trusts and Co-ops are not permitted

? Non-permitted additions/alterations must follow FHA guidelines

? Lot size cannot exceed five (5) acres maximum

? Properties must meet the requirements of FHA and the California Health and Safety Code

? Refer to the Lakeview program matrix for their Disaster Policy

>> See Lakeview Correspondent Lending website for details

? Escrow Holdbacks will be allowed for minor outstanding repairs not completed prior to loan closing

>> The Property must be habitable and safe for occupancy at the time of loan closing

>> Lenders and/or closing agent will be responsible for managing and disbursing holdbacks

>> Lender must deliver loans that were originated in accordance with FHA and Fannie Mae guidelines

?? Please see Lakeview Loan Servicing website for required documents

Property Flipping

? Follow FHA first-mortgage underwriting guidelines

CalHFA requires a copy of all appraisals as required by FHA.

When multiple appraisals are required, CalHFA will base the subordinate loan amount(s) on the lesser of the sales price or lowest appraised value.

Lender Eligibility Requirements

To be eligible for this program lenders must be approved by:

2019 CALIFORNIA HOUSING FINANCE AGENCY

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